Categories: Breaking NewsGovernment NewsNewsPolitics

Lexington Mayor Proposes $539.2 Million Budget for 2025-26

City officials discussing the Lexington budget proposal

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News Summary

Mayor Linda Gorton has proposed a $539.2 million budget for Lexington’s 2025-26 fiscal year, reflecting a 2% increase from the previous budget. The proposal emphasizes public safety, infrastructure improvements, and a balanced approach without new tax increases. Key allocations include $19.2 million for street safety and $6.2 million for new vehicles for city services. Proposed personnel expenses account for 63% of the budget, with a planned 3% pay increase for non-union employees and funding for new positions. The budget requires approval from the Lexington-Fayette Urban County Council by June 30.

Lexington, Kentucky – Mayor Linda Gorton has put forward a proposed budget of $539.2 million for the City of Lexington’s upcoming 2025-26 fiscal year, marking a 2% increase from the current budget of $529 million. The proposal is set against a backdrop of significant investment in public safety and infrastructure, without introducing any new tax increases for residents.

The budget prioritizes street safety improvements, allocating $19.2 million specifically for these enhancements. This initiative includes funding allocated to implement the “complete streets” program, designed to ensure safer transportation options for vehicles, cyclists, and pedestrians. The funding reflects the city’s commitment to addressing traffic safety following the establishment of a city council-approved Street Safety Task Force.

In addition to safety improvements, the proposed budget also outlines a significant investment in public works. It includes $6.2 million for new vehicles for city services, police, and road management, along with $3 million set aside for the design of a new Fire Training Academy. Furthermore, this budget supports snow management efforts with $3.4 million, which encompasses $1.4 million designated for snow trucks and $600,000 for contractors.

Personnel expenses are projected to total $336.7 million, accounting for nearly 63% of the city’s budget. This includes a 3% pay increase planned for all non-union employees, which is expected to help retain and attract skilled personnel for municipal services. The budget also proposes the addition of 16.5 new positions, with 7.5 positions dedicated to staffing a new Senior and Therapeutic Center that is set to open in 2026.

The proposed budget is balanced, incorporating $18 million in bonding—the least amount of debt taken on since the COVID-19 pandemic began. The city anticipates a 5.6% growth in revenue, while facing an estimated 9% increase in expenses. Notably, it reflects confidence in maintaining current funding levels, with $30 million in federal grants for fiscal year 2024 included in the proposal and no proposed cuts in federal financing.

In terms of environmental impacts, the budget allocates $28.2 million for improvements to minimize pollution entering the city’s sewer system, complying with a consent decree established by the Environmental Protection Agency (EPA). The budget also focuses on community services by funding $450,000 to gather public input for a new Parks Master Plan and expanding programs in six community centers, including after-school activities.

Another initiative includes the establishment of an encampment coordinator position within the Office of Homelessness Prevention to assist individuals experiencing homelessness in connecting to available resources and support services.

The proposed budget is subject to review and must receive approval from the Lexington-Fayette Urban County Council, with a deadline set for June 30 to finalize the budget before the commencement of the new fiscal year on July 1.